What does this mean?

For most players a string height (also known in guitar slang as action) of 3/64" of an inch is considered normal. Some players choose a higher sting height such as 4/64" of an inch while players which tend to have a light touch and want the fastest action possible strive to lower the action as close as possible to 2/64" which in many case's is very hard to setup and maintain without fret buzzing somewhere on the finger board

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I am sure 4/64 of an inch is not 0.0625 inch. It would be too low an action. So what does this 4/64 mean?

from the top of the fret to the bottom of the string, and unless you have V callipers don't bother, you're never going to be able to measure anywhere near that accurately. Don't you think you're obsessing over this a little?